Report identifies long-term opportunities in UK environmental consultancy market

A new report from Environment Analyst concludes that the UK environmental consultancy sector grew by 9% in 2008 to reach a turnover of £1.46 billion. This marks a deceleration on the average 13% per annum growth of the previous four years (2004-07).

Consultancy is inherently a lagging indicator of economic cycles due to work signed off in the pipeline months in advance, so it was not until the last few months of 2008 when the tide turned and environmental consultancies were suddenly struggling to keep all of their staff busy. It was during this period of uncertainty that Environment Analyst conducted its first annual benchmark survey of firms active in the sector.

The final report – Market Assessment of the UK Environmental Consulting Sector 2009 – forecasts that the overall market will be flat this year, growing by low single digits at best, but still outperforming the economy as a whole and related areas such as management consulting.

Environmental consultancy disciplines with strong underlying regulatory and political drivers – such as climate change & energy and waste management – are expected to be most resilient. Demand from both the traditional energy sector (oil, gas and nuclear) and renewables industry are also still growing strongly for the environmental consultancy market as a whole. There is also healthy growth in government-funded projects, with the public sector accounting for just under a third of total market revenues in 2008.

Export commodity

Another positive finding is that UK environmental consultancy expertise is very much in demand globally, with overseas work and projects for international clients accounting around a quarter of our survey sample’s total UK revenues. Extrapolating these figures to the market as a whole would mean international work brings in revenues of some £350 million on top of UK-sourced contracts.

The report’s author, Environment Analyst Editor Liz Trew comments: “British environmental consultancies have developed world-leading expertise in areas such as climate change and carbon management and are successfully exporting their services. Our survey shows that most are hoping to win more overseas work over the coming months to help offset the softening domestic market – with the Middle East emerging as having the best growth prospects for these firms globally in spite of the region’s recent problems.”

Recession impacts

Of the twelve disciplines which Environment Analyst considers to form the core of the environmental consultancy market, the strongest performers in 2008 were climate change & energy and ecological/landscape services – both growing in excess of 20%. Growth in revenues from environmental impact assessment (EIA) and related services also increased above the overall market rate last year, but will be inevitably curtailed in 2009 due to a slowdown in the pipeline of development support work.

The survey findings confirm that contaminated land, the biggest single income stream for environmental consultancies (at 16% of total market revenues), has taken the biggest hit from the economic downturn of all the major service areas. Around half of the consultancies surveyed were experiencing contracting revenues from this field of work at the time of the survey, while revenues were flat for a further 20%.

Liz Trew comments: “Overall, the contaminated land segment continued to grow by a respectable 7% in 2008 – largely thanks to projects completed in the first half of the year – but is set to fall sharply this year as brownfield development in the commercial sector has effectively ground to a halt in many areas.”

A cutback in discretionary spend among specific client sectors is also evident from the survey responses. Two thirds of consultancies reported a reduction in revenues from the construction/property sector – with one in ten suffering a drop of 15% or more. Half of consultancies also saw a decline in project spend coming from financial & professional organisations as the banking sector crisis accelerated from the middle of 2008. Revenues from the manufacturing industry were also down or flat for 75% of consultancies.

Further information is available at http://environment-analyst.com/intelligence

Cambridge EMS consultancy teams up with Singapore firm

A Cambridge environmental consultancy firm has established a working arrangement with a partner in Singapore.

Samian Solutions, which offers advice related to Environmental Management Systems (EMS), Electronic Waste management Solutions and other environmental directives, has teamed up with EHS Solutions of Singapore.

The deal was finalised by Ian Broughall, owner of Samian Solutions and EHS Solutions’ managing consultant Dennis Tan.

The firms, which will represent one another in their different business areas, have experience providing advice and services on EMS – a set of procedures to help companies set environmental goals.

Instead of waiting for environmental problems to arise, firms following EMS, institute a set of policies to minimise their impact.

Adhering to ISO 14001, the international EMS standard, demonstrates a commitment to the environment but also gives firms greater risk management, reduces utility costs and cuts waste.

Energy performance certificates – who needs the Government?

By Peter Thom, Managing Director of Green Heat, Cambridge, and President of the Institute of Domestic Heating & Environmental Engineers

After much deliberation the Government has slowly been introducing energy performance certificates (EPCs).

These are required to be provided for all homes by European legislation - the Energy Performance of Buildings Directive (EPBD) which must be fully implemented by 2009.

Prime Minister Gordon Brown and Secretary of State for the Environment Hilary Benn recently announced that the Government would provide funding of £100 million for the development of a ‘green homes’ service over the next three years.

This designed to ease the confusion surrounding EPCs, confusion which was created by the Government in the first place due to poor communication and ineffective information being available.

We would question if this is really necessary when the professionals providing the relevant services have already taken it upon themselves to ensure their clients and communities understand the requirements of, and benefits of a home energy assessment.

There is a growing army of domestic energy assessors (DEAs) who have been trained and are qualified to provide EPCs. This includes a growing number of heating engineers.

In addition to this, more than 62,000 heating installers have obtained the Energy Efficiency Heating qualification. It is estimated that over £50 million has been invested in training, qualifications and registrations.

Having recognised the confusion being created and the limitations of the legislation, we have used our experience and with the support of three industry groups within the Energy Efficiency Partnership for Homes have developed a website which addresses the issues.

The website provides guidance and direction towards competent and qualified installers, green mortgages, green energy tariffs, grants and even DEFRA’s Carbon Calculator and a search facility for qualified DEAs.

EPCs4u is also supported by the major industry trade and professional bodies, including IDHEE, CORGI, HETAS, OFTEC, HHIC, NIA, EST and Network Veka.

We do therefore question the reason for the Government throwing £100 million at yet another scheme to promote energy efficiency, when the industry itself has already taken on the task at no cost to the tax payer.

Furthermore, article 8 of the EPBD requires that energy efficiency advice must be provided for boilers and air conditioning.

Again the industry has taken the lead. We have helped Government to produce a number of quick checklists to be used by service engineers to help identify the older inefficient boilers and to help encourage their replacement.

Peter Thom is president of the Institute of Domestic Heating & Environmental Engineers for the second time having previously been President from 1998 to 2000. He is also managing director of Cambridge-based Green Heat, an energy efficiency and environmental consultancy.

Hertfordshire firm one of Best 100

A Hertfordshire firm that carries out environmental consultancy has been named as one of the top 100 enterprises to work for.

St Albans-based Faber Maunsell came in the 68th spot in the Sunday Times list of Best 100 companies, based on the testimony of staff working there.

Among the firm’s projects is assessing the environmental impact of generating energy from Scotland’s marine enlivenment and staff are proud of the firm’s green credentials and the difference it makes to people’s lives.

Furthermore 78 per cent of employees believe the firm is run on sound moral principles.

Some 80 per cent feel secure in their job and nearly ten per cent of employees have been with Faber Maunsell for over 15 years – loyalty recognised with long service awards.

Personal development is a priority for the firm with financial support and time off and financial incentives offered to help workers achieve membership of recognised institutions.

Personal touches such as days off on people’s birthdays also add to the appreciation employees feel for the company.

Peterborough development gets environmental consultants

A Peterborough development is receiving advice on the environmental management of the homes which could be built on the site.

Gladedale Consortium, which is planning to build a zero carbon community of 450 homes in Peterborough as part of the English Partnerships Carbon Challenge, is to receive environmental consultancy form Inbuilt Consulting and Ecofirst Consult.

All the homes are set to be built to the highest level (Level 6) of the Code for Sustainable Homes.

Dr David Strong, chief executive of Inbuilt said: "We are pleased to be part of a project that will help in the billion-pound transformation of Peterborough, and that will allow us to showcase the best low-energy, low-cost ways to heat, cool, ventilate and illuminate the next generation of new homes."

He added: "We are looking to create substantial savings in the cost of the buildings fabric and services through climate-responsive design principles and designing out unnecessary technical complexity. We will also be advising on the wider community aspects of sustainable new developments."